Canara Bank net soars 279 percent in Q3

Bengaluru– State-run Canara Bank on Friday reported a whopping 279 per cent jump in net profit of Rs 322 crore for the third quarter (October-December) of fiscal 2016-17 from Rs 85 crore in the same period a year ago.

Sequentially, however, net income declined 9.9 per cent from Rs 357 crore in second quarter (July-September), said the bank in a statement here.

Operating profit rose 27.6 per cent to Rs 1,981 crore for the quarter under review (Q3) to Rs 1,981 crore from Rs 1.552 crore in like period year ago.

Total income remained flat at Rs 12,079 crore as against Rs 12,051 crore in like period year ago as interest earned on advances and investments declined 5.5 per cent to Rs 10,288 crore from Rs 10,882 crore year ago.

Total provision for the quarter increased to Rs 1,659 crore from Rs 1.467 crore in like period year ago, while provision for NPAs went up marginally to Rs 1,487 crore from Rs 1,432 crore in same period year ago.

“It was an eventful quarter for us with profitable figures owing to the government’s announcements and ordinances. We have made through all odds and alterations,” said Canara Bank Chief Executive Rakesh Sharma in a statement here.

Current Account and Saving Account (CASA) deposits shot up 30 per cent YoY to Rs 1.54 lakh crore following the note ban, which impelled customers to deposit old Rs500 and Rs1,000 notes in the bank till December 30.

Non-interest income grew 53.32 per cent to Rs 1,792 crore in the quarter.

Gross Non-Performing Assets (NPA) ratio sequentially rose to 9.97 per cent from 9.81 per cent and net NPA ratio to 6.72 per cent from 6.69 per cent quarter ago.

“Cash recovery for the first nine months (April-December) of this fiscal year was Rs 2,979 crore, including Rs 1,021 crore in third quarter,” the bank said in a statement later.

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